From Morioka you can either take a train or a bus. The train leaves around 2:30PM and 4:20PM and takes either 2 1/2 hours or 3 1/2 hours, depending on if you have to wait in Hanamaki. This costs about ¥2,500.

The bus leaves from in front of Morioka Station at 4:20PM. This also costs about ¥2,500.
(but this goes just to Kamaishi, where you get off the bus in front of the station and take another 20 minute bus to Otsuchi (the correct buses are 浪 or 赤浜).

Namiita Beach and Kiri Kiri Beach. Namiita = surfing (they have a rental shop). Kiri Kiri = relaxation. In Namiita, there is the cutest little tea/cake shop a little walk from the beach. It is right in front of the train stop. You can eat beautiful little cakes and drink matcha that you make in little tatami mat rooms. Feels like you went back in time.

Also, Shiroyama Park (城山公園). Climb up the little mountain and see beautiful views of the town, mountains, and sea.

Also, although there are no natural hot springs in the area, there is a spa behind Mast, which is fantastic. There are six baths and two saunas. Three of the baths are outside, which are wonderful after a long day in the winter. Plus, they have a tank full of fish that you can stick your feet in for relaxation.

Not much to buy in terms of souvenirs here, but there is a nihon-shu (sake) that is made in Otsuchi that is delicious. Just go in any liquor store and ask for Otsuchi no nihon-shu, and they should be able to help you find it.

The little ramen shop inside the Mast, and the restaurant at Namita Beach over looking the ocean from a little cliffy area. Great view. Also, a chinese restaurant near the eki street called Sen Sen (せんせｎ).

The neighboring city of Kamaishi has a large statue called the Daikanon which overlooks the bay. Climbing up the stairs to the top is a bit of an exercize but definitely worth it. Inside are several little statues and things to look at. This city also has a sightseeing boat that goes along the coast and is one of the things you MUST do if you are in Kamaishi. Also, there is a sea kayak rental shop.

About an hour away is Tono, home of the kappas. It's a cute little town with a lot of folk history.